This paper investigates empirically the economic feasibility of monetary integration in East Asia. A structural VAR model is employed to decompose real output, real exchange rate and price level into a lagged polynomial of supply, demand and monetary shocks. The shocks are identified through the...

An 'option-pricing' model is employed to analyse the timing of FDI. Assuming that the firm's profits are determined by the attractiveness of both the home and foreign countries, and that attractiveness follows a Brownian motion, an optimal trigger value of FDI is derived. The model shows that,...

This paper presents a small-scale estimated macro model for the euro area (SEAM) designed primarily to generate forecasts and to evaluate the dynamic response of the economy to unanticipated and anticipated shocks. One crucial feature of SEAM is the presence of forward-looking elements, which...